World’s first tripartite financial merger creates an Islamic investment institution – Ibdar Bank - IFN

World’s first tripartite financial merger creates an Islamic investment institution – Ibdar Bank

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GLOBAL: A joint venture between three Shariah compliant financial institutions in Bahrain has successfully established Ibdar Bank, an Islamic investment bank based in Bahrain. The bank is a combined entity between Capital Management House (CMH), CAPIVEST and Elaf Bank. It is expected to commence operations next year. Marked as the world’s first three-way Islamic banking fusion, Ibdar operates under a wholesale Islamic banking license regulated by the Central Bank of Bahrain. The bank has also launched a branch in Malaysia, which is regulated by Bank Negara Malaysia, the country’s central bank. The amalgamation creates an institution with approximately US$300 million in paid-up capital, US$329 million in equity and an asset base of US$360 million. With a combined track record of over 30 years, Ibdar will engage in private equity, debt capital market operations and real estate investments. These are the identified areas of expertise provided by CMH, Elaf Bank and CAPIVEST. In terms of geographical penetration, the bank’s focus is set on the GCC, the MENA region including Turkey as well as Southeast Asia. Ibdar is also said to be investing its assets in three tiers. The first tier will be in the GCC market; the second tier in Turkey and a part of the UK; and the third tier looking towards the developed markets of the US and the rest of Europe. Among others, the areas of investment opportunities in which the bank is hoping to participate are: oil and gas, aviation, infrastructure building and maritime investments. Commenting on the achievement Paul Mercer, the chairman of Ibdar, said: “We see great potential for Ibdar and with significantly enhanced investment and underwriting capacity, the bank is well-positioned to undertake substantial and high quality deals and to more effectively participate in the capital markets.” The bank will also concentrate on re-engaging markets with high quality products, platforms and investment opportunities, while optimizing its assets to ensure better income generation for funds deployed and assets that are managed by the bank.